To think 71 is too old for state pension age?

[winterwonder1]

This isn't just for people who are 21 now - that's for people born after 1970 - so 55 now. I can't imagine being fit enough to do my job at 71.
DWP State Pension age will have to rise to 71 says report | News Shopper

It was explained. Lower state pension but bigger occupational pension.

No it was not. I joined the pension scheme pre access to internet. I was simply told that I paid less NI as a government incentive to encourage people to take out private pensions.

Well, it certainly was to me and I doubt I’m the only one. I was happy to contact out as a result.

What has the internet got to do with it?

I thought contracting out was only for those who choose to do so for private pension schemes. I did not realise it was also for employer pension schemes.
Internet is because these days you just google and look up all the details of your pension scheme on the net. I just got a very basic booklet from local authority. I still have it, it does NOT explain I will get less state pension.

That's even better news that I am wrong🤣

This is the new WASPI, isn't it? People weren't told.

Not if they have a younger partner under state pension age

@echt I am not going to do anything about it. But I still have the booklet explaining the pension when I joined up. So I know what I was told.

I’m pretty ‘on the ball’. I was vaguely aware that my NHS pension meant I was contracted out, but didn’t look into what it meant since I had no choice about it and knew I was in a good pension scheme (albeit it costing me 15% of my salary - 17% in the last few years).

That’s incorrect. Amazon reports its UK revenue though it’s Luxembourg subsidiary

It’s absurd. But I think 68 is ridiculous too.

You still get more overall through your workplace scheme.

The problem with this theory is that many occupational pensions are linked to state pension age. I’m doing what I’m supposed to and paying hundreds every month into my occupational pension but I’m not going to be able to access that either unless I take a huge reduction which will mean I can’t afford to retire.

We used to joke that we will never retire as they will keep moving the goal posts but I don’t feel like it’s a joke anymore. I genuinely worry I will never retire and if I do I will be so unwell I won’t get to enjoy it.

Haven't read the full thread so don't know if others have responded to this but this is not true. NI stops being payable at state pension age.

This is a tricky one.

Yes, 71 is really old compared to our current expectations of retirement.

But the "problem" is twofold.

We're all living a lot longer than we used to. And the demographic timebomb means we don't have as many younger people working to support that many retirees. Many of whom are wealthy, active and using retirement to jetset round the world.

There's actually no answer to this other than move the threshold upwards. We can't become a nation of elderly folks, sucking the life out of the nation by having 40 years of economic dependency after 40 years of work. It doesn't add up.

I do fear this personally, as this gives me another 20 years of work. BUT I think we're going to have to think more flexibly about retirement. The vast majority of my generation are homeowners who will have paid off their mortgage and their kids will gave got through childhood and further education. Surely there could be a bank of people working part time rather than needing to be 100% supported by the taxpayer.

The next step though, is for employers and government to make sure the jobs are there for active elders, and a safety net is there for those who age more quickly into ill health.

Just my opinion. The winter fuel allowance debate was the tip of the iceberg. We have to stop seeing people over 60 as decrepit old dears shuffling round on zimmer frames. We're living longer, active longer.

I agree with you and see the problem. The main issue with retiring later is that a lot of us just won't be fit for it. I'm struggling enough with the menopause and feel knackered half the time, and I am not even 50 yet. I've been working f/t since I was 21 with just two breaks to have babies (and those aren't exactly relaxing breaks!) and the thought of another 22 years of this, as my physical and probably cognitive health slowly declines is deeply depressing. The reality is it's just going to end up with a lot of people effectively having to retire before 71 but not being able to fund this, which means a lot of people in poverty.

Before 2016 State Pension was split into Basic State Pension and Additional State Pension. Again, if you contracted out, you would only get Basic State Pension.
Contracting out was abolished in 2016, since then any qualifying years count towards the new State Pension.
There is a window that is closing this March to buy missing years going back to early 2000s. After March you can only go back six years.

The reason this was stopped was because this is not necessarily the case. Some people had an extra £200 per year put into their private pension. That will not replace a guaranteed inflation proof £40 per week pension for life.

The generation that has retired now has seen amazing things. Much better than the generation before and after and we have to just now get used to it. The public sector workers (eg policeman and firemen) could retire at 55 on final salary pensions. Of course lots of people got out much more than they put in.

To whoever said the pension wasn't intended for 30 years of living the high life was correct. It wasn't intended to live 30 years in any life. Now we just expected to be like the previous generations, and we aren't.

To the poster who said it'll all be ok if we tax the billionaires, I agree with this sentiment. It's just not going to happen to enable us to have a pension like the generation before us. Taking away the winter fuel bill created such a backlash, from a lot of people who are relatively well off. People want other people to pay tax.

Please don’t complain. You paid less and will get less out. You can buy these years back. My brother did. SERPS was introduced in 1978 as a second pension for people that did not have a work place pension. They will get this money paid along with their pension just like people who had a workplace pension get their second pension.

Yeah I agree. There's no reason why the state pension couldn't be means tested NOW and only given to those pensioners without substantial assets/private pensions under a certain amount, but the current generation of pensioners would go insane and it would be political suicide. Ironically, they'll have paid much less into the system, including NI contributions, than all the generations coming after them, who will pay much more and get back a lot less or nothing, and also have to work for much longer. There are solutions to the pension problem, just not ones that people who stand to lose from those solutions (ie the wealthier in society) would ever allow.

Means testing the state pension would be a disaster. It would start off only applying to really rich pensioners. In 10 years time entitlement would be linked to receipt of benefits. And there would be no point anyone saving for old age unless they are very well off.

That's my point, though. The inevitable solution always involves dumping the problem on younger generations, because at the moment, they don't have much of a voice in politics. They're screwed as a result. All of the current older generation's debt (and let's face it, the current pension issue is massively adding to the country's debt burden) is being kicked down the curb for them to pay off.

I think a bigger issue is that the proportion of young people off long term sick is more than the proportion of 55 to 65 year olds off long term sick. Healthy life expectancy is 60 years old so you would expect sickness in the older age group to be far higher. We need people to be working.

Well, if true, that's hardly surprising, given that a large number of 55 to 65 year olds will have retired, and are much likely just to retire than go off long term sick. Not sure why this would have any impact on the current pensions crisis? Young people probably are going off long-term sick as a lot of them can't find decent work (would still need to see a source for that statement though). AI is unlikely to improve this situation.

In demographic terms, the baby boom generation is much larger than any of the Gen X, Millenial or Gen Z generations (hence the name), which is also why they get their own way over pensions (and everything else).